Perhaps you are hoping to form an LLC in Wisconsin. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Wisconsin.
On this page, you’ll learn about the following:
Wisconsin LLC Cost of Filing
Here are the costs involved in forming an LLC in Wisconsin.
Cost of Filing Formation Certificates
The Wisconsin Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Wisconsin Department of Revenue.
Wisconsin Domestic LLC
- Online Filing costs $130
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293. costs $170
Wisconsin Foreign LLC
- Online filing costs $100
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293.
You can visit the Official Wisconsin Department of Revenue website to learn more about Business filings.
Note that filing online is ideal, not only because you need to go to the Department of Revenue office, but also it would be faster. You won’t have to wait in a queue in doing so.
Wisconsin LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Wisconsin, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Wisconsin Department of Revenue for regulatory boards or agencies requiring licensing.
Wisconsin LLC Taxes to Be Paid
The business LLCs in the State are subject to different tax filing obligations. Though the taxes may vary among cities and counties.
Wisconsin State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 3.54% to 7.65%, depending on the total amount of taxable income.
Wisconsin Sales tax
The standard rate of sales tax applicable is at the rate of 5.00% and the rate can go higher up to 5.6% after the addition of local county tax.
Wisconsin Federal Self-Employment tax
Any profit that Wisconsin LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Wisconsin, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Wisconsin Property Tax
The State imposes one of the highest property taxes in the country. The State’s average property tax is 1.68% which generally applies to furnishings and equipment owned by businesses in the State.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Wisconsin, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales tax|
|Wisconsin LLC||$130||$25 (annual)||5.00%|
|Minnesota LLC||$135 (mail)$155 (online)||$0||6.875%|
|Michigan LLC||$50||$25 (annual)||6%|
|Illinois LLC||$150||$75 (annual)||6.25%|
|Iowa LLC||$50||$45 (Biennial)||6%|
The contributing sectors to Wisconsin’s economy are manufacturing, agriculture, and health care. Other sectors include tourism and information technology. The State falls in the higher income states in the United States.
- Wisconsin Name Reservation: $15 for filing by mail
- Doing Business As (DBA): $15 for online filling
- Certified Document Copies: $10
- Certified of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Wisconsin LLC: $20
How Much Does It Cost to Maintain an LLC in Wisconsin
To maintain an LLC in Wisconsin you will need to pay an annual fee of $25 along with state income tax at 3.54% to 7.65%, sales & use tax at 5%, and federal taxes.
Whether you’re looking to start a new business or you’ve recently formed a new LLC in Wisconsin, there are a number of costs involved. The cost to form a Wisconsin LLC varies depending on the service you choose and the services you want to purchase. Some services have one-time fees while others will charge you for renewals. It’s a good idea to have a budget in mind for the costs of forming your LLC.
The first cost you’ll need to pay when forming a Wisconsin LLC is the filing fee. This fee is paid to the Wisconsin Department of Financial Institutions and is a one-time cost. The filing fee can be done online or by mail. You’ll also need to set up a business bank account. Your LLC will need to file an annual report with the Department of Financial Institutions. The fee for an annual report is $25. Depending on the type of LLC you’re forming, you’ll also need to purchase additional licenses and register with the state.
Another cost that you’ll want to consider is hiring a registered agent. A registered agent is a professional who will act as the middleman between your business and the state. They will receive and distribute any government correspondence for your business. They also accept service of process on behalf of your business. This is a very important part of forming a Wisconsin LLC. Having a registered agent can be expensive, but it’s worth the cost.
The next cost you’ll need to pay when forming a Wisconsin LLC is the Articles of Organization. These documents are what officially create your business. The cost of the Articles of Organization is $170. If you need additional services, such as a certificate of status, a Wisconsin business tax permit, or an employer identification number, the cost will increase.
Another important cost when forming a Wisconsin LLC is the annual report. The annual report is a recurring maintenance fee, and is required for all LLCs in the state. The cost of the annual report can be paid by mail or online. In addition to the annual report, there is also a $25 filing fee.
You’ll also need to pay a fee to register your Wisconsin LLC with the Department of Revenue. You’ll need to pay income taxes on your profits, as well as sales & use taxes. You’ll also need to pay taxes to the state and federal government. These taxes depend on the industry you’re in and the amount of business activity you’re doing. In Wisconsin, you’ll pay a 5% sales & use tax, as well as a 3.54% income tax. Depending on how much business you do, you might also have to pay employment taxes.
When forming a Wisconsin LLC, it’s also important to set up a business bank account. You can do this on your own or with the help of an LLC formation service. Whether you decide to form your LLC on your own or with help, it’s important to budget for all the costs involved.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Wisconsin is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.